Payroll tax is payable by an employer in the ACT if its total taxable wages, or the total taxable wages of the group that it belongs to, exceed the threshold. As part of the 2016-17 Budget, from 1 July 2016 the payroll tax threshold has increased to $2 million.
The Payroll Tax Amendment Bill 2014, which removes the ‘genuine employer’ payroll tax exemption for employment agents, has been passed by the Legislative Assembly. This more closely aligns the ACT with the approach of other jurisdictions. Following an amendment moved by the Treasurer, the removal of the ‘genuine employer’ exemption will now commence from 1 January 2015.